Real Estate Advice – The Basics
The recent economic downturn has lead to property prices coming down dramatically. With the expected upswing in the economy, this is the time to invest in real estate. If you do not already own a home and have a stable job and income, plan on investing in your own home now. If you already own a home, look at other real estate investment opportunities. As with any other investment, real estate investment too needs some research and understanding of the basic terms. While most real estate agents are willing to offer real estate advice, it is best to go to them with a prepared list of specifications about the property you want to purchase.
The key to real estate investing is in choosing the location. Whether you plan to live on the property you purchase or rent it out, you need to look at the location and neighborhood properly. A pollution-free, safe, and well-kept residential locality with good, affordable schools in the neighborhood is sure to fetch good returns on investment at anytime. Of course you need to check the town or local plans to ensure that no major roads are planned near the property you have zeroed in on.
As a real estate investor, you need to examine the property for any maintenance issues. Some homes might require plumbing fixes, while others might need to be painted. If you have the time and ability to do these repairs or know somebody who will carry out such repairs go ahead and make your purchase. This is especially true if you plan to rent out the property, as it is the landlord’s responsibility to maintain the electrical, heating, and plumbing fixtures. When you fix the rent, you need to take into account the amount you will be paying toward the mortgage, as well as property and local taxes. The rent should at least cover these costs. Ask other real estate agencies in the neighborhood about the rental income you can expect and check that your expenses will be covered. This piece of real estate advice will help you to make a profit on your investment.
While residential real estate locations need to be in quiet neighborhoods, commercial real estate location needs are different. When buying commercial property, check that the real estate is close to the main business district. Look for a property with ample assured parking space to accommodate the needs of the employees and the customers. Such a place is much more likely to attract enterprises that will pay a high rent.
While there are many angles to real estate investment, the main estate investing advice you need is to look for a good location. While other deficiencies in the property can be rectified after the purchase, the location cannot be changed. A good rule of thumb when looking for residential investments is to ask yourself if you would be willing to move into the neighborhood. As most people have the same needs from a home, if you answered in the positive, you are more likely to get a tenant.
Unlike investing in shares, a real estate investment requires a lump sum from you for the initial down payment. You are also committing to regular mortgage payments for a long period. Given these factors, one should look carefully before deciding to purchase a property. By examining the location from all angles such as possible future developments in the area, you will be able to make a good choice. Real estate advice essentially focuses on helping you to choose a good location for your property.